Investors are heading back to school, and why a Cincinnati streetcar should be named prosperity
Dec 18, 2015
Here are the news stories you might have missed this week:
The Wall Street Journal: Philadelphia apartment market expands
Philadelphia’s population has jumped more than 13 percent since 2000, and the multifamily market is now finally beginning to catch up. No other East Coast city better encapsulates the urbanism trend than Philadelphia, where millennials and seniors are driving the downtown’s population growth. Finally, new apartment buildings that add thousands of new units are breaking ground in Center City and other popular neighborhoods, and rents continue to rise. Head to WSJ.com to read more about Philly’s apartment expansion.
National Real Estate Investor: More investors enter the student housing sector, as prices, sales volume rise
Long viewed as a niche investment, the student housing sector has graduated to the next level. Investors are pouring money into student housing — $4.5 billion this year — because high occupancies and strong fundamentals have made the sector a class favorite for institutional investors. Cap rates are falling, but the student housing market is expanding as prices remain low relative to incomes produced with other assets, like multifamily housing. Will the trend continue? Investors think so, even after the Fed raised interest rates, because student housing might be less sensitive to increased costs than other asset classes.
GlobeSt.com: How one extended-stay is responding to urbanization
There’s an assumption that an extended-stay hotel isn’t made for the urban traveler, but one that’s OK with staying just outside of city limits. Not anymore. Extended-stay hotels have moved into urban settings because they’re following a familiar trend — travelers want to be able to walk to the office, a restaurant, or a retail shop. This hotel evolution places location over price, and hotel operators have noticed. Today, they’re finding properties in major U.S. cities to convert to new extended-stay hotels. To learn more about this trend, go to GlobeSt.com.
Cincinnati Business Courier: Streetcar, developers win big
Cincinnati’s streetcar is getting pumped with plenty of new cash, and while it’s being paid for by developers, they should be happy about it, too. The city council recently approved new property tax breaks for developers and the funding they will funnel to the streetcar’s operations. These tax abatements for new construction and renovation projects aim to spur development throughout Cincinnati, and city officials hope it’s mutually beneficial. Adding funding to the streetcar will hopefully increase its ridership, and bring visitors to new shops and apartment complexes that open because of the tax breaks and improved public transit. Visit BizJournals.com to read more about the streetcar and abatements.